Many of us struggle to find financial peace of mind, whether that is due to our work, or personal situation, sometimes we end up having very little money left over at the end of the month to put into savings. In fact, a recent study found that 45% of Americans have no savings whatsoever. Whilst saving can be difficult, not having some form of savings can leave you in a very troubling situation should an emergency occur. For example, if your boiler breaks in the middle of winter, you may not be able to afford the repairs. With that in mind, here are some tips that will allow you to start saving money…today!
1: Open a savings account
Opening a savings account is the perfect first step towards taking savings seriously. If you keep your savings in with the rest of your money, you are more likely to spend it by accident or take money away from it as and when you need it. A savings account stops you from making frequent withdrawals, and can also allow you to earn interest on the money you put in.
Websites, such as Pigly.com, are a great resource, providing you with plenty of information on opening savings accounts, making loan repayments, mortgages, and setting up a pension. They do the difficult work for you, and can even be used to calculate loan repayments and potential investments.
2: Start saying no
Sometimes, we spend money without even realizing it. For example, over 50% of adults drink coffee every day. If you are getting your daily caffeine fix from your local Starbucks or coffee shop, then this will cost you a significant amount of money at the end of each month. As a result, it’s important that you start making smarter financial decisions – this could include turning down a daily coffee. Instead, why not treat yourself to a fresh coffee once a week, but make it at home the majority of the time?
3: Pay off your debts first
Although you may be keen on saving straight away, you should first try and pay off any debts you owe. After all, the longer you take to pay back a debt, the higher the interest you will have to pay over time. In most cases, this means you will pay more interest in debt repayment than you would earn through savings, meaning it makes far more sense to start saving once you are debt-free.
4: Reduce your bills.
Another great way of saving money is by reducing the amount you may spend unnecessarily on things such as household bills and subscription services. For example, if you feel as though you are spending too much on your heating bill – it may be time to reach for an extra jumper as opposed to turning up your heating. Alternatively, you may want to research other energy providers online to see if they can provide you with a better deal, meaning you can stay warm and toasty year-round!
With hundreds of online subscription services dipping in and out of popularity, from Netflix to Amazon Prime, you may even be subscribed to a service without even realizing it. That means that although you might not be logging on to Netflix to binge their latest show, the money is still coming from your account each week. Check your bank account and find out who is withdrawing money and when – cancel any subscriptions that you haven’t used within the last month – it simply isn’t worth it!
5: Make the most of the discounts
Discounts are a great way to save money on purchases you make each week – from dining out deals to grocery coupons and even discounted clothing and accessories – therefore it is important that you make as much use out of them as possible. For example, if you have your eye on a certain item of clothing, why not find out if the company has any upcoming promotions scheduled? You can usually find this information out on their website or through their social media channels. Waiting a few weeks for your new item will be worth it if you get a decent discount as a result!
You can also install browser apps such as Honey, which automatically searches for the best deals on your chosen products, allowing you to buy the items you need at the lowest possible prices. The add-on is compatible with thousands of online stores and is free to download – meaning you should definitely think about installing it today.